Tax Increases and Small Businesses
Let’s consider the ramifications of a Democratic House or Senate on tax policy. It’s a guarantee that we’d see tax increases if Democrats controlled the House or Senate, crippling small businesses that file their taxes as individuals.
Small businesses that make $200,000+ would have their marginal tax rates jump from 36% to 44%, a minimum increase of $16,000 annually. A friend of mine who is a small businessman would fit into that group. He recently said that he pays almost that much for his family’s health care.
The thing is that President Bush wouldn’t even get a veto on this tax increase because this tax increase would happen as part of the tax cut legislation’s sunset provisions. Democrats have railed against tax cuts for the wealthiest 1 or 2% seemingly forever. It’s a guarantee that Democrats would simply let those cuts to expire, adding mightily to those families’ expenses.
That type of tax increase would almost guarantee an economic downturn, if not a recession. During the Clinton Administration, Demogogue-in-Chief Al Gore decried the “draconian cuts” in the school lunch program that would starve children. In that situation, the Republican Congress was just talking about slowing the rate of growth in the program.
Why isn’t this seen as a “draconian cut” to families’ incomes? Isn’t it important to keep small businesses flourishing? How could this type of tax increase not cause small businesses to delay expansions to their businesses? Why wouldn’t this draconian tax increase cause more people to drop off the insurance rolls? I’d guarantee that some small business owners would stop paying a portion of their employees’ health care premiums.
Republicans who stay home this November would essentially be voting for a recession. They’d be voting for tax increases. That’s hardly an intelligent action.
It’s time for Republicans to start thinking about all of the ramifications their ‘protest votes’ would have on the economy. It certainly wouldn’t have a positive effect.
Technorati Tags: Economy, Tax Increases, Small Business, Democrats
Cross-post at LetFreedomRingBlog
April 28th, 2006 at 8:11 pm
O.K., Gary, so what you’re saying is that it’s not o.k. to have a Republican-controlled Congress (Senate & House) allow certain tax breaks to sunset. Think about that for a couple of minutes.
All right, now that you’ve thought about that, why should we vote for a “republican” senator who votes for amnesty, votes against permanent tax cuts and the death tax, and generally lets Dingy Harry and Chucky Cheesy set policy for the Republican party? At least the donkeys are honest enough to tell us they’ll increase taxes and vote to sprinkle holy water on illegals to change them into honorable citizens.
And insurance? I am lucky, because I’m covered by my wife’s (she works for the guvmint), but couldn’t pay for it if she didn’t. The only way insurance will ever be affordable for me again is if all medical help is refused to illegals and mandatory insurance is made illegal. Excess profits for oil? Check out the insurance industry.
Finally, I shudder to think of an Algore or Frenchy leading this nation, but RINO’s, including Mr. Bush, are leading into economic chaos and destruction just as fast as any donkey would or could. The SCOTUS argument is the only valid one for voting Republican or voting at all, and at this point, it’s nearly a moot point, anyway.